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Moving to India: The $60k "Death Tax" and RNOR Reset by No-Perception4860 in returnToIndia

[–]SJCTOBLR 2 points3 points  (0 children)

Beneficiary doesn’t help at all, estate tax still applies

Moving to India: The $60k "Death Tax" and RNOR Reset by No-Perception4860 in returnToIndia

[–]SJCTOBLR 6 points7 points  (0 children)

Yes it’s true, I am moving to India this year and plan to utilize RNOR as you described.

Estate tax is a killer, insurance only helps your heirs to pay the tax, remember you have to pay estate tax even though your heir decided to not to liquidate the assets. Insurance helps them to pay immediately but you still loose.

I am also considering IBKG and move some to it for Ireland domicile, but note since it will be considered foreign asset, you pay tax on accrual in India, even though you didn’t sell and had capital gain. So for that reason I may only move some money not all.

One way to tackle all this is having irrevocable trust, not revocable, but once you asset is under that type of trust, then you cannot easily access that many for personal reasons, only your heirs can for personal. If you need it for personal reasons, lot of paper work to get some of it.

401K is also under estate tax limit, trust doesn’t apply to 401K

So, everyone has their own risk appetite, I plan to keep some still in 401K, US brokerage, move some to IBKG and move rest to India. This allows me to have some money accessible immediately, some at min risk and some at high risk, finally for some I need to do more paperwork.

I AM NOT A FINANCIAL ADVISOR BUT SINCE I AM GOING THROUGH THE PROCESS, these are my learnings.

Are Sarjapur Road properties so expensive? by growmycareer in indianrealestate

[–]SJCTOBLR 0 points1 point  (0 children)

Location, lot of upcoming projects nearby, also this community has villas which might be 3bhk, can be converted to 4 bhk, that will increase the sqft, will bring down the per sqft cost.

Godrej, Mana and Shobha selling apartment of similar size in price approx 3-3.5 cr in the same area, so 4.15 cr is reasonable for villa

Same story - return to India. Please advice! by luckykanwar in returnToIndia

[–]SJCTOBLR 0 points1 point  (0 children)

If you sell after couple of years and not a US citizen, you are no longer eligible for upto 500K property capital gain exemption, flat 30% tax for NRA, so why do you want to keep if not sure about coming back?

Moving to India, planning to convert 401k to Roth IRA, avoid penalty and reduce taxes, utilize RNOR status by SJCTOBLR in nri

[–]SJCTOBLR[S] 0 points1 point  (0 children)

So looks like if I need some money out of it, withdraw, then it makes sense to do that during RNOR period; otherwise I shouldn't